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Focus on the short-run (i.e. ignore labor market equilibrium).Suppose private spending is volatile and unpredictable. (i.e. theIS curve frequently moves around).
(a) Assuming the real money supply is held constant, what does thisimply for real output?
(b) Suppose the Bank of Canada wanted to keep the interest rateconstant. Show (using the money market diagram) what the Bank would have to do to offset the output fluctuations. What would this imply for the IS - LM model?
(c) Given your answers to (a) and (b), which policy (keeping M/Pconstant or keeping r constant) would better offset fluctuations inY , if the main source of instability were fluctuations in privatespending?
Describe or give example of a real-world dilemma where these six principles could be applied. 1. Understanding each dimension of the problem 2. Who would benefit/suffer 3. Alternative solutions legal/fair 4. Your "gut feeling" level 5. Defend your de..
if the table shows the demand faced by a monopoly company then what is that firms marginal revenues as it increases output from 100 units to 300 units.
An investor has two investment opportunities each involving an outlay of $10,000. The present value of possible outcomes and their respective probabilities are (a) calculate the expected value of each investment. (b) draw a bar chart for each in..
Try to comprise a discussion of elasticity and the demand curve as well as type of market. Make sure you also include some history etc.
You are Secretary of the Treasury Jack Lew. It's six months into Obama's second term as president and you receive some estimates of national accounts numbers you plan to report to the President in a cabinet meeting. Under one set of expectations..
Suppose that an economy initially at full-employment is hit by an adverse supply shock a) What will happen to output and the price level in the short run b) What will happen to output and the price level in the long run
General Electric had some managerial changes due to patterns of change reflective of it production of Generators and Compressor & Motors. What was the market model used during that time, monopoly or oligopoly or another
What is the optimal level of production of wine decanters? Verify that this level of output maximizes not minimizes profit
Illustrtae what situation in which both parties entering into a contract could benefit from slightly ambiguous language contained in the contract.
A family friend has asked your help in examine the operations of 3-anonymous companies operating in the same service sector industry. Fill the missing data in the table below.
Compute the 10-year growth rate forecast using the constant growth model with yearly compounding, and the constant growth model with continuous compounding for each occupation.
As per the Ministry of Finance also the keiretsu are there other problems.
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